1. Regarding market segmentation:
- a firm with multiple market segmentation is going to experience some degree of cannibalism, i.e., one of its products will take sales from another of its products.
- a single market segment approach is generally focused on a small market away from the so-called “center” of the total market.
- the idea of multiple market segmentation is to give each market segment the choice from among several brands from the same seller.
- the single market segment approach is usually some form of the “me too” strategy.
2. Which statement about branding policies is WRONG:
- family branding is best when a firm sells widely different products.
- generic branding does not emphasize the name of the firm making the item.
- multiple brands helps a firm to get maximum retail shelf space.
- mixed branding (brands with both similar & different features) reaches two or more market segments.
3. Marketers with successful brands sometimes hesitate to expand the use of their brands because:
- Federal Trade Commission regulations limit the number of individual products that can be marketed under an individual brand name.
- it is costly to maintain many brands and might weaken the firm’s brand reputation.
- it is often difficult to get additional marketing communications coverage for brand extensions.
- manufacturing divisions usually control brand expansion and often conflict with the marketing division.
4. Which is NOT a characteristic of services?
- personal factors are very important, especially at the time of the purchase decision.
- there is usually a large set of acceptable brands or suppliers offering a given set of services.
- they tend to be adopted more slowly than products because of the difficulty in assessing quality.
- they tend to experience strong brand loyalty.
5. Some service providers have observed that customers can become major competitors. By this they mean:
- customer can perform the service for themselves.
- customers have quality expectations that are difficult to meet.
- customers can go into this business themselves.
- customers are so skeptical that they act as if other competitors actually exist.